U.K. Pensions Regulator tells retirement plan trustees to disclose ESG data or face fines

The U.K. Pensions Regulator warned Wednesday that retirement fund trustees could be fined if they don’t report on ESG and climate change investments.

TPR said in a news release it will launch a campaign in the spring that will check if trustees are publishing ESG data in their statement of investment principles, which outline how retirement funds invest.

Since 2019, retirement funds have been required to publish ESG policies on plan websites to show ESG investments to plan participants. They are also required to publish implementation statements, which show how the principles in the statement of invested principles are enacted.

TPR said its initial analysis showed that a number of defined contribution plans did not provide valid website addresses of their reports.

The U.K. regulator may impose fines of up to £50,000 ($60,265) if trustees don’t comply with the requirement.

Plans with at least £1 billion in assets are also required to publish an annual climate change report.

“These reporting disclosures represent compliance with the basic requirements in relation to ESG and climate change, so it’s disappointing some trustees are failing to meet them,” Nicola Parish, executive director of frontline regulation at TPR said in a news release Wednesday.

“Trustees who fail to comply risk us taking enforcement action against them, and I expect to see an improvement in compliance levels,” she added.